Spotify Takes Aim At Low-Earning Tracks With New 1,000-Stream Minimum
Portfolio Pulse from Franca Quarneti
Spotify Technology SA (NYSE:SPOT) plans to introduce a new minimum annual threshold of 1,000 streams before any track will generate royalties on the platform in Q1 2024. The change aims to address the issue of low-earning tracks and is expected to redirect tens of millions of dollars annually from the 0.5% of tracks that fall into this low-earning category to the other 99.5% of tracks that perform better.
November 06, 2023 | 4:28 pm
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Spotify's new royalty model could potentially increase the company's revenue by redirecting funds from low-earning tracks to better-performing ones. However, it may also face backlash from artists and rights holders.
The new royalty model could potentially increase Spotify's revenue by redirecting funds from low-earning tracks to better-performing ones. However, the change could also lead to backlash from artists and rights holders, which could negatively impact the company's reputation and user base. Therefore, the short-term impact on the stock price is uncertain.
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